Today, we recommend two stocks, both from the green energy sector, which is gaining traction amid the global push for sustainability.
Stocks to trade today, recommended by Trade Brains Portal for 2 July:
- Target price: ₹ 625 in 12-14 Months
- Stop-loss: ₹ 481
- Why it’s recommended:Established in 1994, KP Group is a prominent renewable energy corporation in India. It has created more than 5.75 GW of solar, wind, and hybrid assets through its publicly traded companies, KPI Green Energy, KP Energy, and KP Green Engineering. KPI Green Energy was founded in 2008 and specializes in hybrid and solar energy. Under the “Solarism” brand, it serves captive power producers in addition to developing, owning, running, and maintaining power plants as an independent power producer. As of FY25, the company has more than 5,946 acres of land bank, 2.95 GW of orders in hand, and a total installed capacity of over 950 MW.
The company’s operating revenue climbed from ₹1,024 crore in FY24 to ₹1,735 crore in FY25, a 69% YoY growth. As of FY25, CPP’s revenue share was 87%, while IPP’s revenue share was 13%. EBITDA also increased by 69% YoY from ₹343 crore in FY24 to ₹581 crore in FY25. Profit after tax increased by 101% from ₹162 crore in FY24 to ₹325 crore in FY25.
Its installed capacity as an Independent Power Producer (IPP) is 503+ MW, its installed capacity as a Captive Power Producer (CPP) is 447+ MW, and its total capacity is 950+ MW. Whereas the CPP has an EBITDA margin of about 20% to 22%, the IPP generates a robust EBITDA margin of about 85% to 90%. The overall EBITDA margin would therefore be between 32% and 33% following the extra capacity.
The company has more than 1.76 GW of forthcoming capacity as a Captive Power Producer (CPP), 1.2+ GW of upcoming capacity as an Independent Power Producer (IPP), and 2.96+ GW of cumulative upcoming capacity. In addition to actively participating in tenders, KPI is developing a 5 MW captive BESS project.
A 1 MW captive green hydrogen plant is presently being developed by KP Group with an FY26 completion date. Through the installation of more than 1.20 GW, the business hopes to increase its IPP portfolio from its current 13% to 25%.
- Risk Factor: The Group has the full operational capacity (IPP+CPP) in Gujarat. The geographical concentration risk increases the regulatory risk resulting from any unfavourable policy change in the state or a rise in regional competition, which could affect the group’s margins.
Also Read: Will Torrent Pharma’s big bet on JB Chemicals pay off?
Sulzon Energy Ltd (Current price: ₹ 67)
- Target price: ₹ 78 in 12-14 Months
- Stop-loss: ₹ 61
- Why it’s recommended: Suzlon Energy Limited, a prominent global supplier of renewable energy solutions with a focus on wind energy, was founded in 1995. The company is one of the biggest in the field, with more than 21.1 GW of installed wind generating capacity spread across 17 nations. With 15.1 GW of installed capacity and more than 111 wind farms operating across the country, Suzlon has a 30%+ market share in India. Suzlon serves a diverse client base, including prominent names such as Adani Renewables, Reliance, ACC, Vedanta, ITC, and the Tata Group.
Suzlon Ltd.’s operating revenue in FY25 was ₹10,851 crore, a 67% YoY increase over FY24’s ₹6,497 crore. Compared to the same quarter last year, when it recorded revenue of ₹2,179 crore, the company’s Q4 FY25 revenue of ₹3,774 crore represented a 73% YoY growth.
Improved operational efficiency and higher-order inflows into the wind turbine market were the main drivers of this expansion. Additionally, EBITDA increased by 80.4% YoY to ₹1,857 crore in FY24 from ₹1,029 crore the year before. The company’s profit after tax was ₹2,072 crore, up more than 190% YoY from ₹714 crore in FY24. Q4FY25 profit after tax was ₹1,181 crore, a 320% increase over the same time the year before.
About 0.4 GW of wind capacity was added by the company in FY25, increasing its installed capacity in India to 15.1 GW. The company’s order book reached its biggest point ever, 5.6 GW, with orders up 93% from 2.9 GW in FY24.
Revenue from the wind turbine generator category increased by 101% year over year to ₹8,481.31 crores in FY25. Results for the wind business in FY25 totaled ₹810.85 crore, a significant YoY increase of 1,056%. Suzlon achieved a comfortable debt position by drastically lowering its borrowings, which resulted in a debt reduction from ₹1,905 crore in FY23 to ₹283 crore in FY25.
- Risk Factor: Suzlon’s portfolio of renewable energy is growing, but execution risks, such as project delays, difficulties acquiring land, and problems with grid integration, could affect growth goals. Dependency on government subsidies and incentives also creates unpredictability. Moreover, Suzlon’s business operations and financial performance may be impacted by modifications to laws, since the electricity industry’s highly regulated tariffs or environmental standards. It could be necessary to make additional capital investments to comply with changing regulations, such as pollution control standards.
Market Recap
On Tuesday, the Nifty 50 had a flat start to the day, opening at 25,551.35, and remained in green throughout the day with a slight increase of 24.75 points or 0.10%, closing at 25,541.80. The RSI was at 64.29, well below the overbought zone of 70, and the Nifty closed above all four of the 20/50/100/200-day EMAs on the daily chart.
A similar pattern was followed by the BSE Sensex, which opened at 83,685.66 and peaked intraday at 83,874.29. It closed above all four 20/50/100/200-day EMAs and concluded the day at 83,697.29, up 90.83 points, or 0.11%, with an RSI of 63.03. Tuesday’s session was dominated by investors’ renewed interest in a few initial public offerings (IPOs), sectoral performances, and macroeconomic strength.
Most indices were green on Tuesday. The Nifty PSU Bank Index, which is rising for a sixth straight session, closed at 7,253.0, up 51.20 points or 0.71%, and was among the top gainers. The index was lifted by stocks like Indian Overseas Bank, which soared 2.5%; Punjab National Bank & Bank of Maharashtra, which jumped more than 2%; and other stocks, including Bank of India, Central Bank of India, and UCO Bank, which increased by up to 2.5%.
Moreover, the Nifty Oil and Gas Index gained 57.80 points, or 0.49%, to close at 11,858.75. Top gainers of this index were Reliance Industries and GSPL, which increased by more than 1.5% on Tuesday. The Nifty Infra index closed at 9,451.25 points, a jump of 41.90 points, or 0.45%, with major gainers like Apollo Hospitals increasing more than 3% whereas Siemens Ltd and Reliance Industries rose by 2.20% and 1.85% respectively.
Meanwhile, the Nifty Media Index was among the major losers on Tuesday, down by -23.05 points or -1.31%, closing at 1,731. Stocks including Zee Entertainment, Network 18 Media, DB Corp, and Saragama India lost up to 3%, dragging the index down. Nifty FMCG Index was also one of the major losers, closing at 54,502, down by -380.95 points or -0.69%. Nestle India, United Spirits, Britannia Industries, and Radico Khaitan were among the major laggards, losing around 2.2%.
Asian markets showed mixed trends on Tuesday. South Korea’s Kospi closed higher at 3,089.65, gaining 0.58%, or 17.95 points. Japan’s Nikkei 225 dropped 501 points, or 1.24%, to 39,986, whereas the Shanghai Composite Index ended higher at 3,457.75, up 13.32 points, or 0.39%. As of 4:30 p.m., Dow Jones Futures were down 44 points, or 0.10%, at 44,050.
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